The USD/CAD faces an increased risk of carving a lower-high just below the 1.0800 handle as Canada Consumer Price Index (CPI) unexpectedly quickens to an annualized 2.4% in June from 2.3% the month prior.

Despite the break of the bullish momentum in the Relative Strength Index (RSI), the oscillator appears to be carving a lower-high as well.

Even though Bank of Canada (BoC) Governor Stephen Poloz talks down the risk for inflation, the ongoing shift in the policy outlook may continue to drive the USD/CAD lower as the central bank scales back its willingness to deliver another rate cut.